<http://blog.palm.com/palm/2007/09/a-message-to-pa.html>

"A Message to Palm Customers, Partners and Developers

As many of you are aware, we are in the process of building our next
generation software platform. We are very excited about how this is
coming together. It has a modern flexible UI, instant performance, and
an incredibly simple and elegant development environment. We are
working hard on this platform and on the first smartphone that will
take advantage of it.

In the course of the past several months, it has become clear that the
right path for Palm is to offer a single, consistent user experience
around this new platform design and a single focus for our platform
development efforts. To that end, and after careful deliberation, I
have decided to cancel the Foleo mobile companion product in its
current configuration and focus all of our energies on delivering out
next generation platform and the first smartphones that will bring
this platform to market. We will, of course, continue to develop
products in partnership with Microsoft on the Windows Mobile platform,
but from our internal platform development perspective, we will focus
on only one.

Because we were nearly at the point for shipping Foleo, this was a
very tough decision. Yet I am convinced this is the right thing to do.
Foleo is based on second platform and a separate development
environment, and we need to focus our efforts on one platform. Our own
evaluation and early market feedback were telling us that we still
have a number of improvements to make Foleo a world-class product, and
we can not afford to make those improvements on a platform that is not
central to our core focus. That would not be right for our customers
or for our developer community.

Jeff Hawkins and I still believe that the market category defined by
Foleo has enormous potential. When we do Foleo II it will be based on
our new platform, and we think it will deliver on the promise of this
new category. We're not going to speculate now on timing for a next
Foleo, we just know we need to get our core platform and smartphones
done first.

I would like to thank our customers for their interest in Foleo. I
know there will be disappointed folks who were looking forward to
carrying a Foleo for all their mobile computing needs. I am certainly
one of them. I would also like to thank the developers who have
supported our Foleo efforts. They have been loyal to Palm and have
worked hard to deliver some compelling solutions on the Foleo
platform. I know that they will understand that the right thing to do
for the long run is to focus on one platform that will live for years,
rather than invest energy in a one-off solution. We will make every
effort to make sure we bring our developers forward to our next
generation platform.

This decision will require us to take a limited charge of less than
$10 million dollars to our earnings. This is a lot of money, but it is
a small price relative to the costs that would be required to support
two platforms going forward. This decision is in the best interest of
our customers, our team, our products and our shareholders. I hope
this renewed focus at Palm will allow us to deliver more compelling
solutions to our core smartphone market, and it will allow us to
position ourselves for the long run around one Palm experience.

-Ed Colligan, CEO"


-Bill


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